Team Siliconindia

• Intel to reduce workforce from 108,900 to 75,000 by end of 2025.
• Projects in Germany and Poland scrapped; Costa Rica ops moved to Asia.
• Lip-Bu Tan aims to revive competitiveness and long-term value.

Intel has announced a historic reduction in workforce as part of a broad restructuring effort to retake its competitive position and save on costs. The company unveiled it will trim its core employee base by close to 30,000 at the end of 2025, cutting headcount from 108,900 in 2024 to approximately 75,000. This does not count employees at subsidiaries such as Mobileye. The employee reductions throughly in the form of layoffs and attrition are reported as "mostly complete" and are intended to make Intel a slimmer, quicker, and more nimble company.

This is one of the first big changes under new CEO Lip-Bu Tan, who started in March after Pat Gelsinger left. Tan has openly expressed his intent to transform Intel's business, stating, "It's going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability, and create long-term shareholder value."

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In addition to the layoffs, Intel has scrapped its expansion projects in Germany and Poland. Intel said it would group its Costa Rican operations into current facilities in Malaysia and Vietnam. Building at its Ohio facility will be reduced to align with current marketplace conditions.

Intel's reorganization is occurring at a time when the semiconductor sector is facing major headwinds. Intel has been accused of lagging behind in growth areas in mobile computing and artificial intelligence areas where competitors such as Nvidia have made rapid strides. Nvidia recently became the first public corporation to briefly cross the $4 trillion valuation threshold.

Intel is among other tech giants, including Microsoft and Meta, both of which have also made major cuts this year, mirroring wider headwinds in the industry.